Universal credits and childcare vouchers saved up

Avalanche123

Hello.

I and my husband will be separating. We have 2 kids, one doesn't need any childcare and the other is 1 year old and is in childcare full-time.

He was able to save up some childcare vouchers.

As you can imagine, the childcare cost and the mortgage and bills will basically take my whole earnings away, I think we will be struggling to buy food and I can't imagine what will happen if I need new tires, my old car breaks down, etc. Need a car to get to work, unfortunately. I will be on my own as well, family lives abroad so no help with any childcare whatsoever. I am scared.

Anyway, my question is this:

Can I claim for the childcare I will be paying but to pay for the childcare use a mixture of childcare vouchers as well as the UC? Until the childcare vouchers are gone. He has now stopped receiving them. Or is this not allowed? I don't have more than 6K saved up with them so I am thinking this shouldn't affect the claim. If someone has 5K savings and can claim the whole amount I don't see how it would be fair to use the 3K we have in the childcare vouchers.

Thank you for any advice.

sheramber

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

Avalanche123

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

calcotti

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if you have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

See also
https://workingfamilies.org.uk/articles/tax-credits-and-universal-credit-if-you-use-childcare-vouchers/

If you are claiming Universal Credit, that also includes help with childcare for working parents. You could still use childcare vouchers if you took the value of these off the costs you reported to the Department of Work and Pensions

Avalanche123

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if you have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if yu have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

I dont think that is right. You can use the money saved up in Tax free childcare towards savings. Why would this be dfferent? We are not in receipt any longer

Avalanche123

From entitled to calculator:

What to include as savings

You should enter as savings any money that you can access relatively easily or financial products that can be sold on. The definition of savings for the means test in benefits includes:

• cash;
• money in bank or building society accounts, including current accounts that don’t pay interest;
• money in a Tax Free Childcare account (enter 80% of value)
• National Savings accounts and certificates;
• income bonds;
• stocks and shares;
• property (other than your own home);
• Premium Bonds
• Lump sum taken from a pension fund
• Lump sum payments on finishing work such as redundancy pay or employment tribunal awards

It's a replacement scheme for childcare vouchers, the same thing.

calcotti

Avalanche123 said:

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if you have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if yu have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

I dont think that is right. You can use the money saved up in Tax free childcare towards savings. Why would this be dfferent? We are not in receipt any longer

Avalanche123 said:

From entitled to calculator: 

What to include as savings

You should enter as savings any money that you can access relatively easily or financial products that can be sold on. The definition of savings for the means test in benefits includes:

• money in a Tax Free Childcare account (enter 80% of value)

It's a replacement scheme for childcare vouchers, the same thing.

A Tax Free Childcare Account is a completely different scheme to childcare vouchers. You may see it as a 'replacement scheme' but it is not the same.

UC is a 'replacement scheme' for income based ESA, income based JSA and IS but nobody would say taht they are the same thing.

You asked for advice but appear to have already made up your mind. If in doubt ask UC through your journal.

poppy12345

You are confusing tax free childcare with child care vouchers, they are not the same. You may not be claiming them anymore but you still have the vouchers.

HillStreetBlues

I think (could be wrong)  that the issue is the system is set up expecting a person to be receiving the vouchers and claiming UC at the same time.
So a person would get more UC in a period and also the vouchers,  when using the vouchers these can not be claim back as they have the extra money,  If they did refund the vouchers, it would mean they are paying the childcare  cost twice (the extra money & refund of vouchers).

How it's calculated doesn't work out well for people in your situation, but those are the rules as advised by others.

sheramber

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

It is not a different issue. Getting them  or not you can use what you have.

You can use child care vouchers to pay for all childcare costs or part of them.  But UC only pays a percentage if the actual costs you pay, They do not include the amount covered by vouchers in the calculation.

If you use the vouchers for part of the cost you will also have to pay something towards the costs as well as UC will not cover it all.

You have a choice of

 1   Pay it all with child care vouchers until used up, then claim child care costs from UC, remembering they only pay a percentage of the costs not it all.

2   Pay part with vouchers, part with UC and part yourself.


You cannot use tax free childcare with UC  9 if you use tax free childcare any UC will stop)  so what you can do with the money in  the tax free scheme  is not relevant to  what you can do if claiming UC.

Avalanche123

calcotti said:

Avalanche123 said:

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if you have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

calcotti said:

Avalanche123 said:

sheramber said:

https://www.litrg.org.uk/tax-guides/childcare/universal-credit/how-does-it-interact-other-schemes

................

There is nothing to stop you receiving universal credit and childcare vouchers at the same time. However, you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

For example, if your childcare costs are £500 a month for one child and you get vouchers of £238 a month from your employer, you can only include £262 a month as your costs for the childcare element of universal credit.

We are not receiving childcare vouchers anymore. We have some saved up, different issue.

I don't think it is a different issue. It says

you can only claim help through universal credit for costs you actually incurred and paid for in the relevant assessment period. This means you must deduct the value of any vouchers from the childcare costs that you report to DWP for your universal credit claim.

That means that if yu have childcare costs of £500 and pay £300 with your 'saved' vouchers you can only claim £200 through UC.

I dont think that is right. You can use the money saved up in Tax free childcare towards savings. Why would this be dfferent? We are not in receipt any longer

Avalanche123 said:

From entitled to calculator: 

What to include as savings

You should enter as savings any money that you can access relatively easily or financial products that can be sold on. The definition of savings for the means test in benefits includes:

• money in a Tax Free Childcare account (enter 80% of value)

It's a replacement scheme for childcare vouchers, the same thing.

A Tax Free Childcare Account is a completely different scheme to childcare vouchers. You may see it as a 'replacement scheme' but it is not the same.

UC is a 'replacement scheme' for income based ESA, income based JSA and IS but nobody would say taht they are the same thing.

You asked for advice but appear to have already made up your mind. If in doubt ask UC through your journal.

I dont know what a journal is, I am not claiming yet.

It just seems very unfair.